The centerpiece of Topic 701 is the , which allows homeowners to sell their primary residence and exclude a massive portion of their profit from federal income tax: Single Filers : Can exclude up to $250,000 of capital gains.
To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale: The centerpiece of Topic 701 is the ,
: If your profit exceeds the exclusion limits, you can often reduce your taxable gain by adding the cost of major home improvements (like a new roof or kitchen remodel) to your "cost basis". The centerpiece of Topic 701 is the ,